India Post Payment Bank to open 650 branches this year

Hyderabad, April 24:  

India Post Payment Bank (IPPB) is planning mega expansion to open 650 branches this year.

The first two branches of IPPB have been opened in January 2017 in Ranchi and Raipur.

``We intend to open at least one branch per district across the country. Each branch will be networked with about 1200 to 1500 post offices in a district,’’ B V Sudhakar, Secretary, Department of Posts, Government of India told newspersons at a press conference here on Monday.

When asked whether such a ramp was possible in a short span of time, the official said: ``Technology will allow us to do so.’’

There are 978 standalone ATMs for the Department now. The payment bank is also expected to install more ATMs with tie-ups with other banks. ``By December 2017, we will integrate core system software including core banking, postal operations and savings bank which will also help us,'' he added.

The focus of the payment bank will be on door-step banking, a survey conducted by the department showed `huge’ potential for door-step banking.

It will primarily focus on three products of financial inclusion, direct benefit transfer and door step banking.

The department will also be recruiting 55,000 Gramin Dak Savekas in rural areas out of which the process for filling up of 14,406 vacancies has already commenced.

SPEED POST

The department is also ramping up its focus on speed post as a premium product for revenue generation. ``Speed post facility will be made available in all branch post offices across the country by end of April,’’ Sudhakar said.

The revenue from speed post services had gone up from Rs 1605 crore during 2015-16 to Rs 1740 crore in 2016-17.

PASSPORT

Post office passport seva kendras will also be opened in all 811 head post offices across the country in country by March 2018. As of now, the service is available in 42 post offices across India.

The issue of passports in post offices have commenced in January 2017. So far 31,500 passports have been issued.

``Apart from convenience to people, issue of passports could bring us (projected) revenue of Rs 750 crore,’’ Sudhakar said.

REVENUE

India Post is also expecting to bridge the gap between revenue and expenditure in next two years with a slew of initiatives being taken. For year 2015-16, it reported a revenue of Rs 13,000 crore and an expenditure of Rs 19,000 crore.

Source : http://www.thehindubusinessline.com